UNIT 4 AOS 2 BUSINESS xxx

what is meant by change management?

-the process of implementing strategies that prepare an organisation to undergo a transformation

what must a leader do during change management?

-assess present situation and conditions for future

-have clear vision

-organise all resources & inspire employees

-clearly communicate & alert any obstacles that occur

qualities a leader must have during change management

-motivating

-inspiring

-responsive & communicative

-guiding, supporting & mentoring

-role model

-maintain relationship with stakeholders

-clearly communicate business intentions

what is meant by leadership?

(in change management)

-is the ability to to positively influence & motivate employees towards achieving business objectives during a transformation

staff training

-on the job or off the job

the effect of staff training on number of customer complaints

-establishes an expected standard of performance and employee conduct, allowing for improvements in the quality of a good or service, leading to more satisfied

customers. decreasing num. of complaints

the effect of staff training on number of workplace accidents

-ensures employees are equipped with the skills to handle and operate equipment safely, contributing to a safer workplace.

the effect of staff training on number of sales

-equips employees with the knowledge and skills required to communicate the

value of a good or service to customers and promote sales

the effect of staff training on net profit figures

-provides employees with the knowledge and expertise to deliver high-quality customer service and create positive customer experiences, encouraging repeat

purchasing from customers, leading to increases in revenue.

the effect of staff training on market share

-provides employees with the knowledge and skills to deliver a unique customer experience that provides the business with a competitive advantage and allows a greater proportion of sales to be captured within its industry.

the effect of staff training on rate of productivity growth

-equips employees with the knowledge and skills to perform tasks faster allowing for improvements in efficiency and, therefore, productivity.

the effect of staff training on level of staff turnover

-motivates employees and creates feelings of value as the business provides them with opportunities for personal growth.

the effect of staff training on rates of staff absenteeism

-motivates employees in their jobs as they have the knowledge and skills required to complete their work to a high standard.

the effect of staff training on number of website hits

-employees may be provided with greater knowledge and skills, allowing them to deliver a higher quality good or service, which may improve customers' perception of the business. As a result, more customers are interested in and

engaging with the business's online site

staff motivation

- Performance Related Pay

- Career Advancement

- Investment in Training

- Support

- Sanction,

the effect of staff motivation on level of staff turnover

-motivating employees can provide them with a greater sense of achievement and

increase their commitment to the business as managers recognise their efforts to achieve objectives.

the effect of staff motivation on rates of staff absenteeism

-motivating employees can increase their willingness to show up to work and

complete work tasks as they are provided with greater support and rewards.

the effect of staff motivation on number of customer complaints

-motivating employees can increase their commitment and willingness to improve the quality of a good or service, enhancing the customer service experience

the effect of staff motivation on rate of productivity growth

-motivated employees may be more willing to increase the efficiency and

effectiveness of the production process to achieve business objectives, hence

improving productivity.

the effect of staff motivation on percentage of market share

-motivated employees may deliver higher quality goods and services to customers

and provide them with a unique customer experience that enhances the

competitiveness of the business and allows a greater proportion of sales to be captured within its industry

the effect of staff motivation on number of sales

-motivated employees may be more willing to enhance their product knowledge

and contribute innovative ideas that increase a business's competitive advantage and attract more customers.

the effect of staff motivation on number of website hits

-motivated employees may deliver a higher quality customer service, encouraging

customers to engage with the business online.

-employees who are motivated may be more willing to effectively promote a business's products, therefore attracting more customers to the business's online site.

management styles

-autocratic

-persuasive

-consultative

-participative

-laissez-faire

the effect of changing management styles on level of staff turnover

-adopting a less restrictive management style promotes employee involvement

in decision-making. This encourages employees to feel increasingly valued

and considered in the workplace, allowing the business to have greater employee retention

the effect of changing management styles on rates of staff absenteeism

-adopting a less restrictive management style can increase employee self-confidence

when completing work tasks and create strong interpersonal relationships in

the workplace. This allows employees to feel trusted by their manager and more

connected to the business, encouraging them to regularly attend work.

the effect of changing management styles on rate of productivity growth

-adopting a more restrictive management style encourages employees to perform

efficiently and remain on task, improving a business's productivity

the effect of changing management styles on net profit figures

-adopting a more restrictive management style increases the ability of a manager

to utilise the business's resources in an optimal manner. This can reduce the number

of resources wasted, leading to a reduction in expenses and improvements in profit.

the effect of changing management styles on number of workplace accidents

-adopting a more restrictive management style increases a manager's ability

to provide direct instructions to employees and demonstrate how tasks must

be completed. This ensures employees are properly shown how to use equipment, therefore reducing the likelihood of injury or illness from unsafe work practices.

management skills

-planning

-decision-making

-communication

-delegation

-interpersonal

-leadership

the effect of changing management skills on level of staff turnover

-utilising management skills that incorporate employee input, such as interpersonal, delegation, and communication, can allow employees to feel valued, connected, and trusted in the business as managers take the time to develop relationships with and give responsibility to employees. This can increase a business's ability to retain

its employees

the effect of changing management skills on rate of staff absenteeism

-utilising management skills that create a positive workplace environment,

such as interpersonal and leading, can encourage the development of positive

relationships and enable employees to feel connected to the business as they are inspired by a shared vision. Therefore, employees are more likely to attend work

as they align with the business's values.

the effect of changing management skills on rate of productivity growth

-utilising management skills that create structured and efficient processes, such as planning and decision-making, can ensure employees understand their role and remain on-task to complete their work, which can increase their efficiency.

the effect of changing management skills on net profit figures

-utilising management skills that provide a manager with a high degree of control,

such as planning and decision-making, can allow the business to effectively manage

resources and reduce waste-related expenses, contributing to higher profit margins

the effect of changing management skills on number of workplace accidents

-utilising management skills that clearly convey instructions and work tasks, such

as communication, can ensure employees are aware of their responsibilities and

understand how to complete their roles safely, reducing the likelihood of injury

from unsafe work practices.

what is cost cutting?

-the process of reducing business expenses

A business can cut costs by

• merging staff roles, removing roles entirely, or reducing the number of hours employees work to minimise wage expenses. • shutting down business locations that are underperforming.

• stopping the production of goods with high amounts of unsold stock.

• sourcing materials from cheaper suppliers. • recycling or reusing materials used in the production process

the effect of cost cutting on net profit figures

-removing unnecessary expenses can increase a business's net profit.

the effect of cost cutting on level of wastage

-eliminating resources that do not add value to the operations system can minimise

the number of inputs required in production, therefore reducing the amount of unused resources.

the effect of cost cutting on rate of productivity growth

-merging the roles of employees and streamlining operations processes can reduce the number of inputs required in the production process, therefore increasing a business's overall efficiency.

what are strategies?

-a generic term to represent any business solution to a problem or a course of action to take advantage of an opportunity

technological developments

-automated production lines

-robotics

-computer aided design

-computer aided manufacturing

-AI

-online services

the effect of increased investment in technology on number of sales

-APL, robotics, CAD, and CAM techniques can reduce the number of defects

in production and improve consistency, increasing overall product quality.

-Online services can provide more efficient and convenient ways of communicating

with customers to improve their customer experience

the effect of increased investment in technology on percentage of market share

-AI and online services may allow a business to better understand customers'

interests and needs, allowing it to develop a competitive advantage.

-APL, robotics, CAD, and CAM techniques can minimise production times and improve the quality of products, improving customer satisfaction.

the effect of increased investment in technology on rate of productivity growth

-APL, robotics, CAD, and CAM techniques can improve the efficiency of a

business's operations system as less time and labour resources may be required during the operations process.

-AI and online services can allow a business to better anticipate customer demand, allowing for more efficient use of resources.

the effect of increased investment in technology on net profit figures

-APL, robotics, CAD, CAM techniques, AI, and online services can all decrease

production costs as the number of employees required during the production

process is reduced.

-CAD can improve sales revenue by designing goods that meet specific

customer needs.

the effect of increased investment in technology on number of website hits

-Online services can be used to provide customers with a platform to conveniently

purchase products or book services online, increasing the number of customers

frequenting a business's website.

-AI can provide a business with a better understanding of the demographics and

needs of its customers. This can allow a business to ensure its online platforms align

with customer needs, increasing the level of engagement with the business's website.

the effect of increased investment in technology on level of wastage

-APL, robotics, CAD, and CAM techniques can minimise the number of errors

in production. Reducing the number of defective products produced means fewer resources are discarded, reducing levels of wastage.

the effect of increased investment in technology on number of workplace accidents

-APL, robotics, and CAM techniques can minimise the number of dangerous tasks

that employees are required to perform, increasing their safety at work.

the effect of increased investment in technology on number of customer complaints

-APL, robotics, CAD, and CAM techniques can minimise the number of errors and defects in production, whilst improving the overall quality of a business's products, enhancing customer satisfaction

Improving quality in production & quality strategies

Improving quality in production involves a business implementing processes that increase the perceived value of its good or service.

-Quality control

-Quality assurance

-Total Quality Management

the effect of quality strategies on number of customer complaints

-higher quality goods and services can increase customer satisfaction.

the effect of quality strategies on number of sales

-higher quality goods and services can better satisfy customer needs and increase the likelihood of repeat purchasing

the effect of quality strategies on net profit figures

-higher quality goods and services can increase customer satisfaction and improve sales, resulting in greater profits.

-improving production quality can minimise the number of errors in production,

leading to less wasted resources, thus reducing expenses.

the effect of quality strategies on percentage of market share

-higher quality goods and services can promote repeat purchasing as there are higher

levels of customer satisfaction, increasing a business's competitive advantage.

the effect of quality strategies on level of wastage

-producing higher quality products can minimise errors in production and the

amount of discarded resources, therefore minimising wastage

the effect of quality strategies on number of website hits

-higher quality products can lead to greater customer satisfaction. In turn, this may increase customers' interest in engaging with the business website.

the effect of quality strategies on rate of productivity growth

-improving production quality can minimise the number of errors and defective

products that a business produces, therefore decreasing its number of discarded

resources and improving productivity

Initiating lean production techniques & types of lean management

Initiating lean production techniques involves a business adopting lean management strategies to systematically reduce waste in all areas of production while also improving customer value.

-Pull

-One piece flow

-Takt

-Zero Defects

the effect of lean management techniques on level of wastage

-by implementing pull, businesses will only produce goods and services when

customer orders are received, minimising idle stock and the number of unused

resources that are discarded.

-streamlining processes in the operations system, through one-piece flow and takt, can allow a business to efficiently utilise inputs and minimise wastage.

the effect of lean management techniques on percentage of market share

-business's operations system can become more adaptable, allowing it to produce high-quality goods and services in a manner that addresses changing customer needs. This can increase a business's overall customer satisfaction and competitiveness.

-a business that adopts lean management and demonstrates CSR practices is likely to

attract customers from competitors, as consumers are aware of how the business's activities positively impact the environment and community.

the effect of lean management techniques on rate of productivity growth

-Inputs are used more efficiently to produce outputs as the operations system is streamlined when a business implements takt and one-piece flow

the effect of lean management techniques on net profit figures

-Implementing pull can reduce the amount of idle stock and excess inventory,

reducing business costs

-Continually aiming to improve product quality, through zero defects, results

in fewer errors in the operations system, consequently minimising costs

associated with discarded materials.

the effect of lean management techniques on number of website hits

-Promoting the use of sustainable and environmentally friendly practices can attract more customers to a business's website as they are more likely to engage with socially responsible businesses.

the effect of lean management techniques on number of customer complaints

-A business that strives for zero defects and constantly looks for ways to improve

its quality can minimise its number of defects in production and improve overall

customer satisfaction.

the effect of lean management techniques on number of sales

-by implementing lean management strategies a business can provide a faster,

higher quality customer experience and increase its number of repeat purchases.

-through minimising waste in production, a business can improve its reputation by demonstrating a commitment to sustainable operations, thus increasing sales.

operations process & types of resources

-inputs, processes, outputs

-natural, labour, capital

what is meant by redeployment of resources?

-reallocating natural, labour & capital resources to different areas of the business to improve productivity and effectiveness

The types of redeployment of resources to different areas of the business

• The redeployment of natural resources involves a business reusing, recycling, or repurposing its raw materials and is often associated with waste minimisation strategies. e.g. land

• The redeployment of labour resources involves transferring employees to other areas of the business.

. • The redeployment of capital resources involves a business using physical assets for a different purpose than what they were initially intended for. such as old machinery which is taken over by technology

the effect of redeploying resources on net profit figures

-reallocating resources reduces inefficiencies in the operations system, thus allowing for optimal use of the business's resources and increased profit margins.

the effect of redeploying resources on level of wastage

-reallocating resources increases productivity and reduces the number of resources

that are wasted in a business's operations system.

the effect of redeploying resources on rate of productivity growth

-when labour and capital resources are reallocated, it can result in a more

productive use of resources by ensuring that employees and machinery are no

longer idle.

the effect of redeploying resources on rates of staff absenteeism

-reallocating labour resources to another area of business where they have

different roles and responsibilities can motivate employees to attend work

the effect of redeploying resources on level of staff turnover

-reallocating labour resources to another area of business where they have

different roles and responsibilities can motivate employees and increase job

satisfaction, therefore encouraging them to remain at the business

innovation

is the process of altering and improving or creating new products or procedures.

-A business that focuses on innovation can increase customer interest in its products, more readily develop a loyal customer base, and improve efficiency and effectiveness in its production process.

the effect of innovation on number of sales

-developing innovative goods and services may allow a business to better meet customer needs and allow the business to establish a competitive advantage through its unique offerings, therefore attracting more customers

the effect of innovation on net profit figures

-A business that promotes and sells innovative products is likely to attract and retain more customers as their needs are readily satisfied by the business, therefore, generating more sales and profits.

-implementing innovative production techniques can allow a business to reduce its production costs, therefore increasing profit margins.

the effect of innovation on percentage of market share

-A business that implements innovative production techniques may be able to reduce its production costs. This can allow the business to gain a competitive advantage by enabling lower prices to be offered to customers

-Creating innovative products can attract more customers to a business and therefore increase its proportion of total sales in the industry compared to its competitors

the effect of innovation on rates of staff absenteeism

-Employees may be more motivated and fulfilled if they are involved in the design & development of innovative products, increasing their job satisfaction and

commitment to their work.

the effect of innovation on level of staff turnover

-The development of innovative products that benefit society and the environment may provide value and fulfilment to employees, therefore decreasing the

likelihood of them leaving the business

the effect of innovation on number of customer complaints

-Implementing innovative technology in a business's operations system can improve the quality of its outputs, therefore, improving customer satisfaction levels through minimising the number of faulty products received.

the effect of innovation on number of website hits

-A business that promotes its products with unique and engaging marketing techniques may attract more customers to its online platform.

the effect of innovation on rate of productivity growth

-Utilising innovative production techniques can minimise the number of inputs required for production, thus increasing efficiency.

the effect of innovation on level of wastage

-A business that implements innovative technologies and production techniques

in its operations system may improve production quality and minimise the number of discarded materials and resources..

the effect of innovation on number of workplace accidents

-Utilising innovative technology that can perform tedious or dangerous tasks may increase employee and customer safety, therefore reducing the number of injuries and incidents that occur in the business

global sourcing of inputs

-involves a business

acquiring raw materials and resources from

overseas suppliers.

the effect of global sourcing of inputs on net profit figures

-a business can source its inputs at a cheaper price from overseas suppliers. This can reduce production costs and increase profit margins.

the effect of global sourcing of inputs on number of sales

-sourcing authentic and unique resources that are not available domestically can provide a business with a competitive advantage and entice customers to purchase its products.

-globally sourced inputs may be of a higher quality than domestic resources, therefore increasing the value of the final product and improving customer satisfaction

the effect of global sourcing of inputs on percentage of market share

-offering customers products that have been produced using authentic, unique, or higher quality globally sourced inputs can allow a business to develop a competitive advantage and generate a higher proportion of sales in its industry.

the effect of global sourcing of inputs on number of customer complaints

-using higher quality resources that have been globally sourced can increase the overall value of the final output and minimise the number of defective products produced, thus increasing customer satisfaction

the effect of global sourcing of inputs on number of website hits

-a business that promotes and highlights its use of authentic, globally sourced resources that cannot be obtained locally may attract more customers to its online platform.

-globally sourced inputs that are of a higher quality and lower price can be promoted online and consequently attract more customers to a business's website

overseas manufacture

-involves a business

producing goods outside of the country where its headquarters are located.

the effect of overseas manufacture on net profit figures

-a business can minimise its labour expenses and operation costs by manufacturing overseas, therefore increasing its ability to make a profit

the effect of overseas manufacture on number of sales

-minimising expenses through manufacturing overseas may allow a business to offer lower prices to customers, which can increase customer satisfaction, increase sales, and provide the business with a competitive advantage.

-implementing overseas manufacturing may allow a business to enter into new global markets, thus increasing its brand recognition, whilst potentially enhancing its sales

the effect of overseas manufacture on percentage of market share

-reducing production costs through manufacturing overseas can allow a business to offer lower prices whilst maintaining its profit margin. Offering lower prices can allow a business to increase its competitiveness and improve its proportion of total sales in its industry.

the effect of overseas manufacture on number of customer complaints

-relocating its manufacturing overseas may provide a business with access to highly skilled employees who have greater expertise in producing its output, therefore, the quality of a business's final product can increase, improving customer satisfaction

the effect of overseas manufacture on number of workplace accidents

-overseas workers may be more skilled and trained in using equipment, therefore, minimising the number of injuries and incidents that occur in the workplace.

the effect of overseas manufacture on rate of productivity growth

-highly skilled overseas workers may be able to manufacture outputs quicker and more accurately, thus reducing the amount of time and resources wasted in operations.

global outsourcing

-involves transferring specific business activities

to an external business in an overseas country.

the effect of global outsourcing on net profit figures

-a business can minimise its operations expenses through global outsourcing as the cost of wages is often cheaper overseas, therefore increasing the business's ability to make a profit.

the effect of global outsourcing on number of sales

-when a business globally outsources activities that do not directly contribute to the achievement of its objectives, it can focus more time and effort on developing outputs that meet and satisfy customer needs, allowing for increases in sales